New Peoples Bankshares Posts 29% Net Income Jump, Strong Loan Growth

TL;DR

**NWPP is crushing it with 29% net income growth and solid capital, making it a strong buy in the regional banking sector.**

AI Summary

NEW PEOPLES BANKSHARES INC (NWPP) reported a significant increase in net income for the nine months ended September 30, 2025, reaching $7.198 million, up from $5.578 million in the prior year, representing a 29% increase. This was driven by a robust net interest income of $24.461 million, an increase from $21.081 million in 2024. Total assets grew to $910.724 million as of September 30, 2025, from $854.925 million at December 31, 2024. Loans receivable increased by $49.736 million to $707.272 million, while total deposits rose by $49.394 million to $799.376 million. The allowance for credit losses saw a slight increase to $7.967 million from $7.684 million. The bank maintained a strong capital position, with a Total Capital to Risk Weighted Assets ratio of 16.05% and a Common Equity Tier 1 Capital to Risk Weighted Assets ratio of 14.80% as of September 30, 2025, both well above regulatory minimums. Unrealized losses on available-for-sale securities decreased to $10.837 million from $15.192 million, indicating an improvement in the investment portfolio's fair value.

Why It Matters

This filing reveals NEW PEOPLES BANKSHARES INC's robust financial health, marked by significant net income growth and expanding loan portfolios, which is crucial for investor confidence. The increase in total assets and deposits signals strong customer acquisition and retention, enhancing the bank's competitive standing in the Southwest Virginia, Southern West Virginia, Western North Carolina, and Northeastern Tennessee markets. For employees, continued growth could mean job security and expansion opportunities. The improved capital ratios and reduced unrealized losses on securities demonstrate effective risk management, positioning NWPP favorably against regional competitors in a dynamic economic environment.

Risk Assessment

Risk Level: low — The risk level is low due to the bank's strong capital ratios, with a Total Capital to Risk Weighted Assets ratio of 16.05% and a Common Equity Tier 1 Capital to Risk Weighted Assets ratio of 14.80% as of September 30, 2025, both significantly exceeding the 'well capitalized' thresholds. Additionally, the decrease in accumulated other comprehensive loss from $(11.984) million to $(8.326) million indicates an improvement in the fair value of investment securities.

Analyst Insight

Investors should consider NWPP a strong candidate for a long position, given its impressive 29% net income growth and robust capital adequacy. The consistent increase in loans and deposits suggests sustained operational strength and market penetration, making it an attractive regional banking play.

Financial Highlights

debt To Equity

0.27

revenue

$35,918,000

operating Margin

N/A

total Assets

$910,724,000

total Debt

$21,986,000

net Income

$7,198,000

eps

$0.30

gross Margin

N/A

cash Position

$80,710,000

revenue Growth

+8.3%

Revenue Breakdown

Key Numbers

• $7.198M — Net Income (for the nine months ended September 30, 2025, up from $5.578 million in 2024)
• $24.461M — Net Interest Income (for the nine months ended September 30, 2025, up from $21.081 million in 2024)
• $910.724M — Total Assets (as of September 30, 2025, up from $854.925 million at December 31, 2024)
• $707.272M — Loans Receivable (as of September 30, 2025, up from $657.536 million at December 31, 2024)
• $799.376M — Total Deposits (as of September 30, 2025, up from $749.982 million at December 31, 2024)
• 16.05% — Total Capital to Risk Weighted Assets Ratio (as of September 30, 2025, exceeding the 10.00% 'well capitalized' threshold)
• 14.80% — Common Equity Tier 1 Capital to Risk Weighted Assets Ratio (as of September 30, 2025, exceeding the 6.50% 'well capitalized' threshold)
• $10.837M — Total Unrealized Losses on Available-for-Sale Securities (as of September 30, 2025, down from $15.192 million at December 31, 2024)
• $7.967M — Allowance for Credit Losses (as of September 30, 2025, up from $7.684 million at December 31, 2024)
• $0.30 — Basic and Diluted Earnings Per Share (for the nine months ended September 30, 2025, up from $0.24 in 2024)

Key Players & Entities

• NEW PEOPLES BANKSHARES INC (company) — registrant
• New Peoples Bank, Inc. (company) — principal activity is the ownership and management of a community bank
• Virginia Bureau of Financial Institutions (regulator) — regulates New Peoples Bank
• Federal Deposit Insurance Corporation (regulator) — regulates New Peoples Bank
• Board of Governors of the Federal Reserve System (regulator) — regulates New Peoples Bank
• FASB (regulator) — issued ASU 2023-09
• NPB Insurance Services, Inc. (company) — consolidated entity
• NPB Web Services, Inc. (company) — consolidated entity
• NPB Capital Trust I (company) — not included in consolidated financial statements
• NPB Capital Trust 2 (company) — not included in consolidated financial statements

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [high — financial]: The bank's primary risk stems from its loan portfolio. While the allowance for credit losses increased to $7.967 million from $7.684 million, the overall net loans grew to $699.305 million. Deterioration in borrower creditworthiness or economic downturns could lead to increased loan defaults and charge-offs, impacting profitability.
• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact net interest income. While net interest income increased to $24.461 million, a significant portion of this is driven by loan income. Changes in the yield curve or the bank's ability to manage its deposit and lending rates could affect future net interest margins.
• Investment Portfolio Valuation [medium — financial]: The bank holds $96.153 million in investment securities available-for-sale. Unrealized losses on these securities decreased to $10.837 million from $15.192 million, indicating some recovery. However, significant market volatility could lead to further unrealized losses, impacting accumulated other comprehensive income and potentially capital ratios.
• Regulatory Compliance and Capital Adequacy [medium — regulatory]: As a state-chartered member bank, NWPP is subject to various regulations. Maintaining capital ratios above regulatory minimums is crucial. The Total Capital to Risk Weighted Assets ratio of 16.05% and CET1 ratio of 14.80% are strong, but changes in regulations or a decline in risk-weighted assets could necessitate adjustments.
• Operational and Cybersecurity Risks [medium — operational]: The bank relies on technology for its operations. Disruptions due to system failures, cyber-attacks, or data breaches could lead to financial losses, reputational damage, and regulatory scrutiny. While not explicitly detailed, these are inherent risks for financial institutions.
• Economic Conditions in Operating Regions [medium — market]: The bank serves southwest Virginia, southern West Virginia, western North Carolina, and northeastern Tennessee. Economic downturns or industry-specific challenges in these regions could negatively affect loan demand, credit quality, and overall business performance.

Industry Context

New Peoples Bankshares operates as a community bank primarily serving southwest Virginia and surrounding regions. The banking industry is characterized by intense competition from larger national banks, regional players, and increasingly, fintech companies. Key industry trends include a focus on digital transformation, evolving customer expectations for seamless online and mobile banking, and a dynamic interest rate environment impacting net interest margins.

Regulatory Implications

As a state-chartered member bank, NWPP is subject to oversight from the Virginia Bureau of Financial Institutions, FDIC, and the Federal Reserve. Maintaining strong capital adequacy ratios (Total Capital to RWA of 16.05% and CET1 of 14.80%) is critical for regulatory compliance and operational stability. Changes in banking regulations, particularly those related to capital requirements or lending standards, could impact the bank's operations and profitability.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze net interest margin sustainability.
3. Evaluate the impact of investment portfolio performance.
4. Assess the bank's ability to maintain strong capital ratios.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported net income of $7.198 million, a 29% increase year-over-year, driven by strong net interest income and loan growth.
• 2025-09-30: Consolidated Balance Sheet as of September 30, 2025 — Total assets reached $910.724 million, with loans receivable at $707.272 million and total deposits at $799.376 million, indicating balance sheet expansion.
• 2024-12-31: Consolidated Balance Sheet as of December 31, 2024 — Prior period balance sheet data used for comparison, showing total assets of $854.925 million.
• 2024-09-30: Nine months ended September 30, 2024 — Prior period results for comparison, showing net income of $5.578 million and net interest income of $21.081 million.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A primary driver of profitability for banks; NWPP saw a significant increase to $24.461 million for the nine months ended Sept 30, 2025.)

Allowance for Credit Losses

An estimate of the amount of a bank's loan portfolio that is expected to be uncollectible. (Indicates the bank's provision for potential loan defaults. It slightly increased to $7.967 million, reflecting prudent risk management.)

Available-for-Sale Securities

Investments that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (NWPP reported a decrease in unrealized losses on these securities to $10.837 million, suggesting an improvement in the fair value of its investment portfolio.)

Risk-Weighted Assets (RWA)

Assets weighted according to their perceived risk. Higher risk assets have higher weights. (Used to calculate capital adequacy ratios. NWPP's strong ratios (16.05% Total Capital, 14.80% CET1) indicate a robust capital buffer against potential losses.)

Common Equity Tier 1 (CET1) Capital

The highest quality of regulatory capital for a bank, primarily consisting of common stock and retained earnings. (A key measure of a bank's financial strength and ability to absorb losses. NWPP's CET1 ratio of 14.80% is well above regulatory requirements.)

Net Loans

Gross loans receivable minus the allowance for credit losses. (Represents the bank's core lending business after accounting for potential losses. NWPP's net loans grew to $699.305 million.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, New Peoples Bankshares Inc. (NWPP) has demonstrated significant financial improvement. Net income surged by 29% to $7.198 million, primarily fueled by a robust increase in net interest income, which grew by 16% to $24.461 million. Total assets expanded by 6.5% to $910.724 million, supported by substantial growth in both loans receivable and total deposits. The bank also shows a healthier investment portfolio, with unrealized losses on available-for-sale securities decreasing by 28.7%. Capital ratios remain strong and well above regulatory thresholds, indicating continued financial stability.

Key Financial Figures

• $0.07 — 2,572 2,572 Cash dividend declared ($0.07 per share) — — — ( 1,661 ) — ( 1,
• $0.08 — 3,658 3,658 Cash dividend declared ($0.08 per share) — — — ( 1,889 ) — ( 1,
• $3.0 billion — a bank must have consolidated assets of $3.0 billion or less. The primary benefit of being d

Filing Documents

• nwpp_10q.htm (10-Q/A) — 2430KB
• ex31_1.htm (EX-31.1) — 11KB
• ex31_2.htm (EX-31.2) — 11KB
• ex32.htm (EX-32) — 11KB
• 0001903596-25-000542.txt ( ) — 11424KB
• nwpp-20250930.xsd (EX-101.SCH) — 46KB
• nwpp-20250930_cal.xml (EX-101.CAL) — 66KB
• nwpp-20250930_def.xml (EX-101.DEF) — 147KB
• nwpp-20250930_lab.xml (EX-101.LAB) — 349KB
• nwpp-20250930_pre.xml (EX-101.PRE) — 307KB
• nwpp_10q_htm.xml (XML) — 3260KB

Financial Statements

Financial Statements Consolidated Balance Sheets - September 30, 2025 (Unaudited) and December 31, 202 3 Consolidated 4 Consolidated 5 Consolidated (Unaudited) 6 Consolidated 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults upon Senior Securities 34 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 35

Financial

Part I Financial Information

Financial

Item 1 Financial NEW PEOPLES BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (IN THOUSANDS EXCEPT PER SHARE AND SHARE DATA) (UNAUDITED) September 30, December 31, 2025 2024 ASSETS Cash and due from banks 13,686 $ 13,218 Interest-bearing deposits with banks 66,538 54,300 Federal funds sold 486 150 Total cash and cash equivalents 80,710 67,668 Investment securities available-for-sale, at fair value 96,153 95,984 Loans receivable 707,272 657,536 Allowance for credit losses ( 7,967 ) ( 7,684 ) Net loans 699,305 649,852 Bank premises and equipment, net 16,689 17,070 Other real estate owned 89 87 Accrued interest receivable 3,849 3,458 Deferred taxes, net 3,837 4,809 Insurance benefit receivable — 5,417 Right-of-use assets – operating leases 3,117 3,413 Other assets 6,975 7,167 Total assets 910,724 $ 854,925 LIABILITIES Deposits: Noninterest bearing 228,881 $ 224,938 Interest-bearing 570,495 525,044 Total deposits 799,376 749,982 Borrowed funds 21,986 24,986 Lease liabilities – operating leases 3,117 3,413 Accrued interest payable 1,491 1,442 Accrued expenses and other liabilities 5,226 4,361 Total liabilities 831,196 784,184 SHAREHBOLDERS' EQUITY Common stock - $ 2.00 par value; 50,000,000 shares authorized; 23,577,193 and 23,636,724 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 47,154 47,273 Additional paid-in-capital 14,390 14,451 Retained earnings 26,310 21,001 Accumulated other comprehensive loss ( 8,326 ) ( 11,984 ) Total shareholders' equity 79,528 70,741 Total liabilities and shareholders' equity 910,724 $ 854,925 The accompanying notes are an integral part of these consolidated financial statements. 3 NEW PEOPLES BANKSHARES, INC. CONSOLIDATED FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS NOTE 1 NATURE OF OPERATIONS Nature of Operations – New Peoples Bankshares, Inc. (New Peoples or the Company) is a financial holding company whose principal activity is the under the laws of the Commonwealth of Virginia. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System (the Federal Reserve). The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwest Virginia, southern West Virginia, western North Carolina and northeastern Tennessee. These services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company's financial position as of September 30, 2025 and December 31, 2024, and the results of operations for the three- and nine-month periods ended September 30, 2025 and 2024. The Notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc.

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